Yearly Archives: 2019

Burton v CofT – Only 50% of US CGT allowed as foreign tax offset as only 50% of Australian capital gain assessable & a majority said the DTA argument failed – appeal dismissed

On appeal, the Full Federal Court has upheld (by majority) that a decision that a taxpayer was not entitled to a full foreign income tax offset (FITO) for US tax paid on the sale of investments, as only half the capital gain had been included in his assessable income although there was an ancillary DTA…

Wilkins v ASIC – SMSF loans applications in wrong name: mortgage broker’s ban reduced by AAT from 3 years to 18 months as not dishonest

ASIC banned a NSW Mortgage broker from providing financial services – as a result of applying for 60 SMSF loans in the wrong name. The ban was for 3 years but the AAT reduced that to 18 months. See below for further details about the wrongdoing and the result. FJM 28.8.19 [Tax Month – August…

DCT v Pedley – DPN liability stands – no basis to say that company payments should have been applied company debts for which director was personally liable

The Full Federal Court has dismissed an appeal against a decision confirming an ATO application for summary judgment in respect of a director penalty notice (DPN) liability of almost $160,000. There is an important lesson to be learnt here about whether the company should pay (rather than the director pay the DPN amount) and if…

‘Opt-in’ insurance in super funds for members under 25 or with sub $6,000 account balances – Senate Committee’s report tabled

The Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019 was  introduced on 4 July 2019 (and at the time of writing, had not progressed past that point). It proposes to require insurance within superannuation be provided on an opt-in basis for: (i) account balances less than $6,000; and (ii) members under 25 years old. On Tuesday 23.7.19, the…

Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2019 reintroduced – SGC opt out for some employers of multi-employer members; NALI provisions extended to non-arm’s length expenses and ‘Total Superannuation Balance’ to include LBRA balances in some cases

The Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2019 was introduced in the House of Reps on Wed 24.7.2019 (and, at the time of writing, had not progressed pass first reading stage). It re-introduces measures in the similarly named  2018 Bill (which lapsed when Federal Parliament was prorogued for the Federal election). See…

Measure to ensure that ‘salary sacrificed’ to employer superannuation contributions do reduce the SGC employer contribution

The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019 – Schedule 7, will ensure that that the amount of salary an individual sacrifices to employer superannuation contributions, does not reduce the earnings base on which SGC contributions are calculated and that the employer sacrifice contributions can’t be used to satisfy…

Treasurer’s ‘roadmap’ to the Governments’ legislative response to Commissioner Hayne’s recommendations in his Banking Royal Commission Final Report

On 19 August 2019, the Federal Treasurer: Josh Frydenberg issued a press release setting out his Government’s ‘road map’ for introducing and passing legislation recommended by Commissioner Ken Hayne, in his Final Report into his commission to investigate wrong doing in the Financial Services Industry (commonly known as the Banking Royal Commission). See below for…

Bill to introduce a new s26-102 to limit deductions for holding costs on vacant land

The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019 – Schedule 3, will limit deductions that can be claimed whilst land is vacant – except for businesses and certain taxpayers.DATE OF EFFECT: would apply to losses or outgoings incurred on or after 1 July 2019. See related Tax Technical article about the…